Reykjavík City Council approved an ambitious plan for the area south of the domestic airport, but the parliamentary Budget Committee might not grant them the right to develop.
Vísir reports that city hall approved a measure that would develop a whole new neighbourhood on Reykjavík’s south shore of Skerjafjörður, which lies south of the airport. The proposal now moves to the Planning and Environmental Committee for fine tuning and approval.
However, the land slated for development is currently a part of airport property, and therefore the property of the national government. Vigdís Hauksdóttir, the chairperson of the parliamentary Budget Committee, told reporters that the committee majority does not want to sell the land to the city.
“It was the Social Democratic Party in government who made a deal with Social Democrats in city hall for this performance, and we’re just unraveling it,” she said.
City council chairperson Dagur B. Eggertsson would not comment on what effect the committee’s position would have on the city’s plans.